CP achieves key labor settlements

Canadian Pacific late Wednesday announced two labor settlements that E. Hunter Harrison, president and CEO, said puts the railroad "in a very good position to continue the work of being an even more reliable and efficient railway for our customers."

CP said a federal arbitrator's award concluded the collective bargaining process with the Teamsters Canada Rail Conference, on behalf of Running Trade Employees, and Rail Traffic Controllers, and an agreement is now in place.

The award contains, among other changes, a cap on pension growth and a new pension accrual rate for future hires. The deal is three years in length and is retroactive to January 2012.

CP also announced the ratification, with 94% acceptance, of a five-year agreement reached with the International Brotherhood of Electrical Workers on Nov. 15. This contract begins Jan. 1, 2013.

"I am pleased we were able to reach another agreement with a key union and we are looking forward to working with the IBEW," said Harrison.